What Are the Requirements While Selecting Lawsuit Funding?
Selecting a lawsuit funding company is a lengthy process, and getting it right is of utmost importance. With the right lawsuit funding company, you can strengthen your case, boost your confidence, and raise the chances of success. There are many reasons for plaintiffs to get in touch with pre settlement loan companies; some use these companies to fund legal expenses.
Lawsuit funding is a brilliant idea if you have been injured and must pursue a lawsuit. But, with so many lawsuit funding companies out there, how will you know which one to go with? This article lists essential requirements to help you select the best company for your case.
Pre Settlement Funding
Lawsuit funding is a type of pre-settlement funding, which is a type of financing that can help you pay for your legal expenses in a pending lawsuit. The advance settlement funding company will provide the cash you need to file your case. It simply means they will lend you in advance and then they will get it back from your settlement.
Pre settlement lawsuit funding companies are becoming increasingly popular because they can help people looking for financial assistance with their legal fees. If you qualify for lawsuit funding, you might get the money you need without waiting months or even years for an insurance pay-out.
But, you must meet some qualifications for pre settlement funds. Here are some of them:
- Strong cause. You should have a viable case: If your case is not strong enough, it will be impossible for the law firm to get the money back from the defendant. For example, if your case is based on an injury that isn’t life-threatening or related to a dispute over money, it might not be considered viable.
- No prior pending lawsuits. There should be no pending lawsuits against you. As soon as you apply for a settlement advance, the lenders check your credit history and criminal record. They will likely reject you if there are any outstanding or pending lawsuits against you. If you have some unpaid bills, your chances of getting approved will also decrease.
- Good credit score. You should have no history of bankruptcy or tax liens against you. The best lawsuit loan companies will check your credit score and do a background check on you. Your application is approved if there are no negative marks on your credit report.
- Detailed documentation. You should have adequate documentation of your legal expenses and costs. The pre settlement lawsuit loan company will verify that you have paid all the bills related to the litigation. You may be required to submit copies of receipts or contracts between you and your attorney.
- Background checks. You should not be involved in any other type of litigation when applying for lawsuit funding. The lawsuit funding company wants to make sure that you are not involved in any other cases as it would affect their decision on whether to fund your case or not.
Choosing a Pre settlement Funding Company
If you are an injured party looking for a settlement cash advance now, you should consider the below factors while selecting lawsuit funding companies.
1. The Reputation of the Company
This is essential because it determines how well a company will treat you when they fund your case. They will treat you with respect and dignity if they have a good reputation. A company with a bad reputation may not be trustworthy enough to handle your case professionally.
2. Experience of the Company
The experience of a company denotes how long they have been in business. You should only select those companies that have a proven track record of helping people win their cases successfully.
3. Cost of Funding
You don’t want to spend too much money on financing your lawsuit since it might not even be successful or take too long to settle out of court. Therefore, when choosing a settlement loan advance company, ensure that they offer affordable rates so you don’t spend too much money on financing your case.
4. Repayment Term
The repayment term dictates how long you have to repay the lawsuit funding company after your case settles or if it goes to trial. You can choose from 3 months, 6 months or 12 months. If you win an amount less than expected, you can also repay the loan earlier than expected. This helps you save money on interest payments because of early repayment.
5. Loan Amount
The amount of money you get depends on three factors: the type of lawsuit, its duration, and any additional costs. If your case is likely to settle quickly with little effort, you may qualify for a smaller loan amount than someone who has a lengthy proceeding ahead of them with high attorney fees.
6. Duration of Lawsuit
This is the most important factor since it determines the expected return on investment of your lawsuit funding. If you have a good case and expect a settlement or award, you can apply for high-interest lawsuit loans. However, if your case will take too long to resolve and you don’t have any other income, then it is better to opt for lower interest rates.
7. Type of Lawsuit
The type of lawsuit also matters when selecting a lawsuit funding option. If your case involves personal injury or wrongful death, you can quickly get legal financing due to high demand and competition among lenders. In contrast, it may be challenging to find reliable lenders if your case involves intellectual property rights or breach of contract. Such lawsuits are less common than personal injury claims or wrongful death cases.
8. Compare Them With Competitors
Make sure you compare the pre-settlement funding companies you are interested in with similar companies. You should compare their rates, as well as their terms and conditions. You can do this by reading online reviews and asking around for recommendations.
9. Ensure the Company Is Licensed
You will want to make sure that the company is licensed when it comes to providing funding for lawsuits in your state or jurisdiction. This means they can legally provide such services and offer them to people in your area.
Before you’re able to obtain lawsuit funding, there are several qualifications and requirements that you will need to meet. Lawsuit funding is an attractive option for those going through a difficult time in their lives and who need pre settlement funds to help through the litigation process.
However, you must work with a reputable firm when making your selection. Always do your homework and check out the various companies available before settling on one in particular.